Insurance: No License, No Problem?

It is possible to get car insurance without a license, but it can be challenging and more expensive. While some insurance companies will decline coverage to unlicensed drivers, others will extend coverage. However, they may charge a higher premium due to the increased risk associated with insuring an unlicensed driver. The best way to find a good policy is to compare quotes from multiple companies and work with an independent agent familiar with the local options.

You can no longer drive but still own a car

If you can no longer drive but still own a car, there are several things to consider. Firstly, you will need to decide what to do with your vehicle. If you plan to sell it, you can temporarily insure it until the sale is complete. Alternatively, if someone else will be driving the car, such as a family member or caregiver, you can insure it accordingly. In this case, you would list yourself as an excluded driver and the other person as the primary driver.

It is important to note that insuring a car when you don't have a license can be challenging and more expensive. Insurance companies typically view unlicensed drivers as higher-risk, resulting in higher insurance rates. Additionally, some companies may be wary of insuring unlicensed drivers, and some states require at least one licensed driver on the policy.

If you decide to keep your car, proper maintenance is crucial, especially if the car is not driven regularly. This includes keeping the battery charged, maintaining tire pressure, removing garbage and perishable items, changing fluids and oils, and ensuring the air conditioning seals are lubricated.

Furthermore, even if you're not driving your car, it's essential to maintain auto insurance. Most states require some form of insurance on your vehicle, and insurance companies voluntarily reduced rates during the shelter-in-place orders. You can explore options to lower your insurance rates, such as raising your deductible, lowering your mileage, or shopping for lower rates from different providers.

You have a suspended license

If you have a suspended license, you may still be able to get car insurance, but it will be more difficult. You will be seen as a high-risk driver and will likely have to pay higher premiums. Some insurance companies will decline coverage, but others will extend it.

Your license may have been suspended for a number of reasons, including driving under the influence (DUI), driving without insurance, or having unpaid traffic tickets. This will impact your ability to get insurance, as some insurers may not offer you coverage, especially if your driving history indicates that you are prone to risky behaviour or accidents.

To get insurance with a suspended license, you may need to:

• Apply for a hardship or restricted license. Many insurance companies will not insure someone with a suspended license, but they may if you have a hardship or restricted license.
• Shop around for the cheapest insurance. High-risk drivers pay some of the highest premiums, and not all companies will insure them.
• Obtain an SR-22 or FR-44. You may be required to have your insurer file a certificate of financial responsibility with your state to prove that you carry the required minimum amount of liability insurance. An SR-22 is a form that your insurance company must file with your state, confirming that you are complying with the state's minimum auto liability insurance requirements. An FR-44 is similar, but it is required in only some states, and the minimum liability requirements are higher.
• Seek non-standard providers. When you have a restricted license, you will typically be considered a high-risk driver by most insurers. There are a number of auto insurance companies known for extending coverage to high-risk drivers, such as The General, Geico, and Bristol West.

You may also want to consider non-owner car insurance, which gives you liability coverage when driving a car you don't own.

It's important to maintain continuous coverage, even while your license is suspended, as gaps in coverage can lead to higher rates in the future.

You have a learner's permit

If you have a learner's permit, you can get car insurance. In fact, you need to be covered by an auto insurance policy if you are driving with a learner's permit. While you can get your own insurance policy, the cheapest way to get car insurance as a teen with a learner's permit is to be added to your parent's or guardian's existing policy. Most auto insurance companies allow first-time drivers with permits to be added to the plan of a parent or guardian. However, some companies may only provide insurance to those with a learner's permit if they are getting their license within 30 or 45 days.

Permit drivers, like all drivers, must carry at least the minimum car insurance requirements in their state. If you are under 18, many car insurance companies will require that you have a parent or guardian co-sign the policy. Most car insurance companies have underwriting restrictions that the named insured cannot be younger than 18. If you are a newly licensed minor, your parents should add you to their car insurance policy as you cannot purchase car insurance on your own until you are the age of majority in your state.

If you are an adult with a learner's permit, you may need to purchase a separate auto policy. This is also the case if you do not live with your parent or guardian and are not attending school. Getting separate coverage for a permit holder is typically more expensive.

If you have a learner's permit, you can also get parked-car insurance if you won't be driving your car at all. This type of policy is cheaper than typical auto insurance policies that include liability coverage. However, you will be considered uninsured if you drive your car while you have parked-car insurance only.

You have a DUI conviction

If you have a DUI conviction, you may be required to have a certificate of insurance with your respective state that proves you're meeting your state's car insurance coverage requirements. These certificates are typically known as SR22s or, if in Florida or Virginia, FR44s. At a minimum, you'll need to purchase liability insurance coverage to get the filing.

If you have a DUI conviction, you are likely to be considered a high-risk driver and your car insurance rates will be much higher. A DUI conviction can increase your rates anywhere from 28 to 371 per cent, depending on the circumstances, where you live and your insurer's policies, among other factors. The average percentage hike is 80 per cent ($1,163 more a year), according to Insure.com's rate analysis.

USAA and Progressive have the cheapest car insurance rates after a DUI conviction, on average. However, rates can vary significantly across different insurance providers, so it's recommended to shop around to find the best rate.

Some insurers will allow someone to purchase auto insurance without a driver's license if they designate someone other than themselves as the primary driver on a policy. You can also change your car registration to list a licensed driver as the co-owner of your vehicle.

If you have a DUI conviction, you may be required to attend Alcoholics Anonymous meetings, have an ignition interlock device installed in your vehicle, or have your license suspended or revoked.

You're insuring a car for a minor

If you're insuring a car for a minor, you may be able to list yourself as an excluded driver on the auto insurance policy and list the minor as the primary operator. However, the rules for excluding a driver vary by state and company.

In most cases, minors cannot sign legal contracts, so they cannot take out an insurance policy on their own. A minor may be able to get their own insurance with an adult co-signer. At 18 (or the age of majority in your state), a teen can get their own insurance without assistance.

If you are insuring a car for a minor, you should talk to your current insurer to find out when you should add the minor to your car insurance policy. Adding a minor to your policy may increase car insurance rates by 70% to 150%. However, adding a teenager to your car insurance will usually be the most cost-effective option.

Frequently asked questions